Peripheral Hardware

1
Peripheral Hardware
Developed in house or to our specifications, our
peripheral hardware increases flexibility for
exhibitors and aids seamless integration.
Wall box and automation system controller Automate
s interface with lighting, curtains, 35mm systems
etc.
External RAID array Provides safe, secure and
redundant storage of digital film
Digital to analogue audio converter Integrates
digital media server with legacy audio hardware
2
Training, operation and support
A successful digital circuit requires
comprehensive training for exhibitors as well as
reliable maintenance, service and support. AADC
offers

• Training
• Comprehensive projectionist, cinema technician
  and cinema management courses
• Online knowledge base and user support
• Preventative maintenance visits
• Replacement of filters where necessary, image
  recalibration, and performing any hardware and
  software upgrades as necessary
• 24 hour telephone support line
• Report faults, help with operational issues,
  escalation to trained engineers where necessary
• Remote diagnostics via our NOC
• IP over VPN connectivity from each site to
  central monitoring platform
• Identify issues (e.g. overheating) before they
  cause playout problems
• Fix problems where possible
• On site call outs by a trained engineer if
  required

3
Content management and delivery
AADC has developed proprietary systems to
securely manage content through encoding,
encryption and delivery to cinemas

• AADC proprietary software to manage content flow
  through
• Submission
• Encoding
• Subtitling
• Encryption
• Key generation
• Packaging
• Archival
• Duplication
• Key delivery
• System allows distributors to order prints and
  keys via a secure website
• UKFC uses hard drive solution delivered by
  courier, but we are also considering networked
  delivery

4
The UKFC Digital Screen Network

• AADC are responsible for installing and operating
  the UK Film Council Digital Screen Network (DSN)
• AADC provides leased equipment to the
  exhibitors/UKFC and recoups costs back through
  UKFC Awards, exhibitor usage/service charge,
  digital print duplication and delivery
• Distributors are offered encoding, key management
  and digital print delivery services by AADC
• Cinemas are provided with a complete package
  including installation, training, all equipment,
  and maintenance and support for the duration of
  the contract
• The technology used is 2K DLP Cinema projectors
  from Christie and NEC and a QuVIS server.
  Initially the circuit will use QuBIT encoding but
  will be upgraded to JPEG2000 as soon as possible
• Encryption is AES 128bit with encrypted playback
  keys which allow playback windows to be set and
  are specific to individual servers
• Rollout is underway and the first 50 are due to
  be installed by early next year, with the
  remaining 190 taking a further 12 months

5
Weve Reached the Tipping Point for DC Roll Out

• The technology is accepted as being as good if
  not better than film
• DCI (the group formed by the Hollywood Studios)
  has spent 3 years getting all the studios to
  agree to a standard
• Equipment costs have come to a level where its
  now affordable
• Rising costs of talent and marketing require
  studios to find cost saving
• The UK Film Councils DSN is showing it can work
• Commercial deals have been announced in the US
• Major Hollywood talent (Lucas, Zemekis, etc) is
  behind the format

Technology
Cost Pressure
Evidence
6
Benefits of Digital Cinema
7
Commercial Digital Cinema

• AADC are in discussions with distributors and
  exhibitors to implement a wide scale commercial
  installation of digital projection equipment
• Roll out initially in the UK, and then expanding
  to other European territories
• Digital prints are comprised of two components
• Virtual Print Fee
• Delivery Fee
• Exhibitors pay an annual service charge to cover
  maintenance and a declining temporary equipment
  fee to cover a piece of the underlying lease
• The virtual print fee subsidises the digital
  projectors and servers
• When recoupment is complete after roughly 5 -7
  years (dependent on volume), the temporary
  equipment fee becomes 0
• The temporary equipment fee also falls each year
• Distributors will guarantee to provide films
  digitally when their films are booked at a
  participating cinema
• If the equipment cost is not met at the end of
  the contract duration, then the term is extended
  if it is over recouped, then a rebate is given
• Deal begins once we have 100 screens and 3
  studios signed up